Romney Company exchanged one business automobile for a replacement automobile. The old automobile had an original cost of $40,000, a book value of $16,000, and a fair value of $24,000 when exchanged. In addition, Romney paid $9,000 cash to acquire the replacement automobile. The list price of the replacement automobile was $45,000. The replacement will help generate significantly greater cash
flows in the business. At what amount should the replacement automobile be recorded for financial accounting purposes?
A) $24,000
B) $30,000
C) $33,000
D) $35,000
C
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In this method, instead of generating new ideas themselves, consumers are provided with a list of problems in a general product category.
A. Problem inventory analysis B. Brainstorming C. Focus groups D. Reverse brainstorming
The board of directors is responsible for managing day-to-day operations and carrying out the policies established by the chief executive officer
Indicate whether the statement is true or false
Plummer Corporation has provided the following data for its two most recent years of operation: Selling price per unit$44Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials$9Direct labor$6Variable manufacturing overhead$4Fixed manufacturing overhead per year$63,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold$5Fixed selling and administrative expense per year$66,000 Year 1 Year 2Units in beginning inventory0 2,000Units produced9,000 7,000Units sold7,000 8,000Units in ending inventory2,000 1,0000 The net operating income (loss) under absorption costing in Year 2 is closest to:
A. $132,000 B. $26,000 C. $92,000 D. $31,000
Which one of the following is not one of the four main functions provided by underwriters?
A) Assumption of some market risk B) Responsibility for marketing securities C) Auditing the financial statements D) Estimating the value of an offering E) Establishing the offer price